Using data from household surveys, you have determined that the 'typical' household's preferences are represented by the utility function, U = (x + 24)y, where x represents the quantity of fruit and vegetables consumed, and y represents the quantity of the composite good consumed. The associate marginal utilities are, MUx = y and MUy = x + 24. The price of fruit and vegetables is Px = $10 per kg, and the price of the composite good is normalised to Py = 1.(They have determined that, ideally, a household would consume at least 5kg of fresh fruit and vegetables each week.)

Step 2: Find the household's demands for 'fruit and vegetables', and for the composite good, as functions of the household's weekly income I. Hint: There is a critical income level below which the household's optimal consumption basket is a corner solution. (23 marks)